The companies CurioInvest and MERJ Exchange are entering into a partnership in the luxury car sector. The companies want to tokenize collector cars as an investment model. Thus, this elitist form of investment could also be available to less well-off people in the future. It is planned to tokenize up to 500 vehicles that are stored in Germany.
A new digital token will make it easier for investors to invest in luxury cars in the future. At least that is the plan of the companies CurioInvest and MERJ Exchange Ltd. They want to link the so-called Ct1 token to the value of collector cars.
CurioInvest and MERJ want to “democratize” investments in luxury cars
“You make it possible for someone in Uganda to invest in a rare car, which is parked in a garage in Stuttgart. This is tokenized by a company in Liechtenstein and all this is embedded in a recognized regulatory framework,” says Jim Needham, head of digital strategy at MERJ.
The statement comes from a telephone call with the business news portal Bloomberg, which reported on plans on January 31. This model is “a perfect example of how blockchain and distributed ledger technology can help democratize capital markets,” he said.
CurioInvest is an investment platform based in Zurich. According to the company’s website, CurioInvest specializes in particular in investments in collector’s vehicles. Thus, this market is to be opened to “millions of new investors”. MERJ Exchange Ltd. on the other hand is an exchange for digital value investments. Meanwhile, the Seychelles-based company has been pursuing expansion plans in Europe for some time. In August, for example, MERJ entered into a partnership with the British capital company Globacap and thus gained access to the European security token market.
The CT1 also allows investors to purchase fragments of the digital token. CurioInvest and MERJ Exchange plan to list up to 500 cars worth over $200 million.
First tokenized luxury car is a Ferrari
The first luxury car to be tokenised in the project is a Ferrari F12tdf. This car is worth 1.1 million US dollars and is currently stored in a warehouse in Stuttgart, where the other vehicles will also be stored. However, the plans of CurioInvest and MERJ include not only new luxury cars but also antique cars. The two companies assume that the prices for these investment properties will rise continuously. According to the Bloomberg article (citing a report by the consulting firm Knight Frank), antique cars have yielded a return of 330 percent between 2007 and 2017.